The result is often referred to as the “K-shaped economy”, in which the well-off population is rising rapidly, while people with poor economic conditions (especially blacks, Hispanics, and female workers) are suffering from the economic consequences of the pandemic. As wealthy people become richer and more mobile in the “working from home” era, they are buying houses.
Business and economy
There are Zoom towns in the United States.
Many middle-class millennials who have been on the sidelines in the real estate market for years report that the epidemic has accelerated their purchase plans. The Fed cut interest rates aggressively and lowered interest rates, which made mortgage loans cheaper and there was more room for development.
Some millennials are liberated from office buildings through remote work arrangements, and they seem to be targeting cities where single families can afford them—some writers call it “zoom” towns. According to data from Ellie Mae, a mortgage software company, people between the ages of 21 and 40 account for a large percentage of home loans in places like New Castle, Pennsylvania and Frankfurt, Indiana. At the same time, rents in expensive cities such as New York, San Francisco and Boston have been falling.
This giant skeleton worth $300 has been sold out.
When people find themselves spending time at home, many people decide to finally fix the back porch or renovate the garden, or invest in a strange decoration style. As the U.S. shifted from restaurant service spending to spending on goods, Home Depot and its competitors performed generally well because of restaurant closures and long holidays that became infeasible. However, this home repair shop found that during the Halloween period, the trend of surplus goods has a lot to do. The company provided giant skeletons for $300, which caused a national sensation and even sold out in October. People continue to decorate the 12-foot-long frame for the holidays to make social media users happy.
Deficit spending has been recognized by celebrities.
Bones are not the only area where some Americans believe that bigger is better. For years, a group of economists has argued that the United States has unnecessarily constrained its potential by controlling the federal deficit. They say that resource constraints are the real limit on spending by the US government that prints its own currency.
This idea-called modern monetary theory-has attracted a lot of attention in 2020, especially when some Democratic presidential candidates have promised to expand government spending plans. It even attacked Hollywood. Actor and musician Ice Cube suggested in a tweet that the United States should be able to deal with issues such as hunger and homelessness because it can print cash. To prevent fans from misunderstanding this point, he posted a follow-up photo of economist Stephanie Kelton’s theory book, which came out in 2020.
In addition to the recognition of celebrities, this theory has also been criticized by many critics, and it clearly doesn’t work in Washington: the debate on a $900 billion rescue package signed by President Trump on Sunday night The focus is on deficits. But in this year, due to Congress and the White House intervening to resist the effects of the pandemic, the government’s debt increased rapidly, so it seems that there is indeed a larger spending era.